Do I still need pay the appraisal and processing fee after my loan application declined?

Question

I signed a house purchase contract with somebody,the owner supposed to pay all the closing cost,but my loan application failed,
do I still need pay the appraisal and processing fee?or owner need pay,he is responsible for all closing cost,those are part of closing cost

Answer 1

Yes, that is your responsibility. It is not the fault of the mortgage broker, the appraiser, or anyone else that your application failed, for whatever the reason.

The work was still performed, and must be paid for. It was performed at your best for your purposes, and you should feel proper in paying for same.

Answer 2

He's usually only obligated if the loan closes. However, read your purchase contract. Does it say anything if the loan fails? Most of the time, you're obligated to pay the appraisal and the application fee, even if the loan doesn't close. However, they usually don't do the appraisal until they're sure your loan is going to processed, is it because the appraisal didn't warrant the cost? You may be able to use the same company and look for another house, and they may waive the costs.

Answer 3

The seller is only responsible for the closing costs if you purchase the house. You are unable to purchase the house so they are not responsible. I have to say that you should not be responsible for the processing fee either. That fee is charged only if the loan were to close. So the only fee you should be responsible for is the appraisal fee. I am actually surprised that they did not make you pay that up front.

Answer 4

You need to pay for the appraisal, but not the processing fee. I have never heard of that.

However, if you use your same loan officer for your next house, they may pay for the next appraisal for you...not always, but they might.

A seller is not obligated for any closing costs until the home closes.

Answer 5

It relies upon on the coverage of the lending company yet many times, if the deepest loan became denied after an appraisal is made, the fee is frequently shouldered with the help of the borrower. notwithstanding, if the denial became made beforehand of unquestionably appraisal, the request for a reimbursement of the appraisal cost is justified.

Answer 6

Most lenders will require loan applicants to pay for the appraisal regardless of whether or not the loan is approved, but that requirement has to be in writing. As for the processing fee, that's between you and the lender.

Look through your paperwork very carefully and find out what you did and didn't agree to.

Answer 7

No absolutely not, if your application was denied you are relieved of any obligations. The appraisal only gets paid if the loan closes. Why didnt your loan get approved??